PRICE ACTION
Just as everyone starts to talk relentlessly about LTC; contrarian alarm bells everywhere should be sounding off. Is this the end of the LTC run? Almost certainly not – but green candles don’t last forever; and pullbacks are healthy in organic markets.
The 4H chart is now touching the top of a nice parallel channel; and the short/sharp price action over the last 24 hours confirms there is resistance here. The RSI is also flashing overbought as well; and although that shouldn’t solely be used for ‘evidence’ of something happening; it does help build the picture. If you are not currently long; you should not be long right now!
Like the 4H chart; the 1D is also creeping closer to overbought each day. There appears to continue the theme of a rising channel here; however, with the extension all the way back to December – it is possible that the channel in the 4H chart only represents the top half of a much bigger channel. This could be important in the weeks ahead...
Again, the 1W is also flashing overbought and the same channel from the 1D chart presents a possible overhead resistance here. Interestingly; it looks like the 13W MA could synch up around the middle of the channel – with the 26W starting to creep above the base of the channel. This is a positive development that will encourage long term bulls.
OPEN INTERESTS (BITFINEX)
Long: 2.13 Days
Short: 0.82 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 145, 175, 200
Support: 120, 108 (28D MA), 100
PREVIOUS ANALYSIS
Just as everyone starts to talk relentlessly about LTC; contrarian alarm bells everywhere should be sounding off. Is this the end of the LTC run? Almost certainly not – but green candles don’t last forever; and pullbacks are healthy in organic markets.
The 4H chart is now touching the top of a nice parallel channel; and the short/sharp price action over the last 24 hours confirms there is resistance here. The RSI is also flashing overbought as well; and although that shouldn’t solely be used for ‘evidence’ of something happening; it does help build the picture. If you are not currently long; you should not be long right now!
Like the 4H chart; the 1D is also creeping closer to overbought each day. There appears to continue the theme of a rising channel here; however, with the extension all the way back to December – it is possible that the channel in the 4H chart only represents the top half of a much bigger channel. This could be important in the weeks ahead...
Again, the 1W is also flashing overbought and the same channel from the 1D chart presents a possible overhead resistance here. Interestingly; it looks like the 13W MA could synch up around the middle of the channel – with the 26W starting to creep above the base of the channel. This is a positive development that will encourage long term bulls.
OPEN INTERESTS (BITFINEX)
Long: 2.13 Days
Short: 0.82 Days
RELATIVE STRENGTHS
- Micro (5m): Neutral
- Short Term (4h): Overbought
- Mid Term (1D): Slightly Overbought
- Macro (1W): Slightly Overbought
ON BALANCE VOLUME
- Mid Term (1D): Rising
- Macro (1W): Rising
KEY PRICE AREAS
Resistance: 145, 175, 200
Support: 120, 108 (28D MA), 100
PREVIOUS ANALYSIS
Comment:
RSI has now moved into a bullish divergence against price on the 4H chart. With previous resistance here & the middle of the rising channel - a 15% upside potential exists for bulls looking at short term opportunity.
RSI has now moved into a bullish divergence against price on the 4H chart. With previous resistance here & the middle of the rising channel - a 15% upside potential exists for bulls looking at short term opportunity.
A continued pullback to the middle of the channel will likely set up a hidden bullish divergence on the short term 4H chart